Meezan Bank registers healthy growth of 65% YoY in 1HCY20

August 18, 2020 (MLN): Meezan Bank Limited has unveiled its financial results for the 1HCY20 ended June 30, 2020.  As per results, the bank has reported its net profits of Rs 11.58 billion (EPS: Rs 8.97), showing significant growth of 65.38 % against net profits of Rs 7 billion (EPS: Rs 5.42) of the same period last year.

The robust growth in earnings was attributable to higher Net Spread earned (56% YoY) on the back of volumetric growth in assets driven by Power/Ijarah Sukuk.  Moreover, a sharp rate cut did play to the bank’s advantage, AKD research mentioned.

During the period under review, Non-Funded Income (NFI) increased by only 8.6% YoY on the back of higher foreign exchange income, up by 21% YoY along with capital gains of Rs 965 million.

According to a report by EFG Hermes, Fee and commission income took a hit owing to the COVID-19 outbreak, however, a sharp improvement in NIMs offset weaker fee income.

Meanwhile, the overall other expenses surged by 26% on the back of higher operating expenses and workers' welfare funds.

Consolidated Profit and Loss Account for the half-year ended June 30, 2020 ('000 Rupees)

 

Jun-20

Jun-19

% Change

Profit/return earned on Islamic financing and related assets. Investments and placements

 57,832,671

 40,011,089

44.54%

Profits on deposits and other dues expensed

 25,486,719

 19,255,013

32.36%

Net spread earned

 32,345,952

 20,756,076

55.84%

OTHER INCOME

 

 

Fee and commission income

 2,963,134

3856279

-23.16%

Dividend income

 91,127

 108,193

-15.77%

Foreign exchange income

 1,298,113

 1,074,466

20.81%

(Loss) / gain on securities-net

 965,629

 (141,029)

Other income

 245,734

 221,978

10.70%

Total income

 37,909,689

 25,875,963

46.51%

 

 

 

OTHER EXPENSES

 

 

Operating expenses

 14,584,297

 11,677,102

24.90%

Workers' Welfare Fund

 464,378

 344,685

34.73%

Other charges

 83,686

 2,155

3783.34%

Total other expenses

 15,132,361

 12,023,942

25.85%

 

 22,777,328

 13,852,021

64.43%

Share of results of associates before taxation

 (355,942)

 (300,731)

18.36%

Profit before provisions

 22,421,386

 13,551,290

65.46%

Provisions and write offs -net

 3,097,096

 1,052,237

194.33%

Extraordinary / unusual items

 –

 –

Profit before taxation

 19,324,290

 12,499,053

54.61%

Taxation

 7,741,200

 5,495,046

40.88%

Profit after taxation

 11,583,090

 7,004,007

65.38%

Basic and diluted earnings per share (Rupees)

 8.97

 5.42

65.50%

 

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Posted on: 2020-08-18T10:31:00+05:00

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